Take Charge America Helps Couples Avoid Common Money Mistakes

PHOENIX--(BUSINESS WIRE)--Financial issues are among the top causes of breakups or divorce, yet
it’s not always a lack of money that leads to friction. The problem is
often the result of financial incompatibility among people who enter
romantic relationships with different habits, viewpoints and long-term
goals.

“It’s very common for both partners to bring debts and assets into a
relationship as well as completely different spending and saving
habits,” said Mike Sullivan, spokesperson, Take Charge America, a national
nonprofit credit counseling and debt management agency. “Even if
they’re compatible in every other way, money truly can ruin romantic
relationships. Fortunately, most couples can resolve their challenges by
communicating, negotiating and making a point of addressing their
finances in a direct and meaningful way.”

Sullivan offers the following five tips to couples:

Communication: Many couples simply don’t address the topic of
money. Communication is an important part of every relationship, and
this is certainly the case with money. Couples should consider holding
a regular money meeting, whether quarterly, monthly or even weekly, to
ensure they’re on the same page, set a budget and define long-term
goals.

Negotiation: This tip, too, applies to all aspects of a
relationship, but it’s critically important for couples to understand
one another’s spending styles and negotiate as needed. Perhaps he was
born with a silver spoon, while she held multiple jobs from a young
age. Whatever the case, couples must understand each other’s
upbringing, strengths and weaknesses, and negotiate the way they
handle their money.

Rules and freedoms: To mitigate issues caused by differences in
financial styles, it’s important to create guidelines on spending
limits, agree on savings goals, and work together to pay off debt.
Some couples have full freedom to spend – up to a certain dollar
amount – while others commit to paying down student loans or saving 10
to 15 percent of their monthly income.

Accountabilities: An easy fix to many financial disagreements
is assigning specific roles and accountabilities to each partner.
Perhaps one partner pays the rent or mortgage while the other handles
the groceries, phone bill and loan payments. However it’s divvied up,
this strategy assures both partners are committed to managing their
money well.

Partnership: This is perhaps the greatest bone of contention
when it comes to finances, especially if one partner is working hard
to save and spend within the bounds while the other seems careless
with the couple’s finances. In such cases, there may be emotional
issues at play, whether one partner indulges in retail therapy or the
other uses money as a weapon or punishment. Whatever the case,
partnership in setting and meeting financial goals is integral to
happiness and harmony. A professional counselor may be needed to help
uncover underlying causes of money problems and differences.